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module 2

5 pages105 viewsSummer 2011

Department
Marketing
Course Code
MKT 100
Professor
Paul Finlayson

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Module 2: Market Orientation
Analyzing Competition
No competition - single supplier of product
Oligopolistic competition - few large suppliers (detergent or aircraft industry)
o in industries that require very large investments in equipment,
technology and/or distribution (encourages mergers and acquisitions)
ocompete on price, product features, advertising and sales promotion.
Monopolistic competition many suppliers offering a variety of products, each
of which has a small, loyal market share (salad dressings, beauty salons,
bars)
oLots of product/service differentiation b/ rivals & price competition.
Perfect competition when many suppliers sell essentially the same product
oSupply and demand will control the price
oSuccess = Low cost production of a quality product and efficient
distribution
oType of market = type of company resources and company growth
objectives
ogeneral competition comes from products that satisfy a core benefit
emphasis needs to be on the commercializing and diffusing of new innovation
into the market
Evolution of tech revolutionalize market
See threat = see in new competitions processes = need to be a good intuitive
process thinker and observer
focus on a profitable business development opportunity using a new
technology that delivers more in benefits than the current technology.
have to be a visionary
indicators of a likely change in future sales, profits, and competitiveness:
oChanging brand mind-share: customer preferences often
foreshadows a change in market sales share.
oChanging brand voice-share: The changing share of advertising
dollars the brand has of the total dollars spent on advertising in the
market.
oChanging research and development (R&D) share: long-term
indicator of new product innovation and thus market share, important
measure of future competitiveness in many high technology markets.
five forces that shape competition:
o(1) current competitors,
o(2) the threat of new entrants,
o(3) the threat of new substitutes,
o(4) the bargaining power of distributors (or business-to-business
customers)
o(5) the bargaining power of suppliers - power reduces the profitability
of transactions with them
Auditing current competitors
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Module 2: Market Orientation
reports on the current success stories, mistakes, competitive advantages and
disadvantages of a competitor
Supply Manufacturing Distribution Marketing
Service
Processes  operations  processes  & Sales  processes
processes processes
Analyzing Channels
New tech = biggest driver of change in channels of distribution
Radio play top 20 = increase record sales = competitive pirated music
Researching individual trade customers
address issues of market fit and product differentiation fit.
understand the reasons for a channel members change in performance and
behaviour by tracing back through the distributors added-value chain
challenge is to understand where the distributor or trader is comparatively
weak and/or strong along its added-value chain
Market Scanning and Analysis
analyze competition and how to be profitable and competitive understand
economic, social and technological trends impacting the market and
consumers
Customer Focus - fitting tech to consumer preferences so understand
consumer
new trade routes, new ways of delivering goods and services and information
to foreign customers has been advancing
most important economic trends that the North American business and
manager must track are economic trends in emerging nations economic
recession in North America (real estate) = f/ economic trend in emerging
nations where increasingly prosperous consumers in China and other
emerging economies preferred to save and invest their new found
discretionary income rather than spend it on immediate consumption.
think dynamically
skilled global communication and distribution technologies to market their
brands and innovations around the world at highly competitive prices
tech shift in capital investment and financial services to these new
financial centres
NA lost competitiveness b/c: traditional manufacturing and financial services.
Tech improves customer service and decreases jobs
Keynesian multiplier dynamic - boom and bust cycles of economies
market evolution dynamic between supply and demand - evolutionary growth
of particular markets
feedback market dynamic merge convenience stores and gas stations.
circle because it means more supply, an increase in supply over demand, and,
hence, increased competition for your business and thus lower prices and/or
more service.
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